Nebraska voters rejected online sports betting Tuesday, voting down a pair of ballot measures that would have brought mobile wagering through the state’s racetrack casinos.
Initiative 441, the statutory piece to regulate Nebraska sports betting, failed 54.5% to 45.5% with 91% of votes counted, according to Associated Press via the New York Times. Initiative 440, which would have amended the Nebraska Constitution, failed by a nearly identical margin.
Both needed a majority of votes to pass, and online sports betting required approval of both. Tax Relief Nebraska, the committee behind the measures, raised nearly $22.5 million through Oct. 29, with DraftKings and FanDuel contributing $10.4 million each, according to the Nebraska Examiner.
“Obviously we were disappointed with the result in Nebraska where the ballot didn’t go in our favor, but I think we’ll take something from that,” Dan Taylor, CEO of FanDuel parent company Flutter, said during the company’s Q3 2026 earnings call on Wednesday.
“We know that there’s a need for the tax dollars and we know that we can deliver through regulation the protection for consumers that is required,” he added.
Despite the Nebraska loss, Taylor said there is a “strong pipeline of further state openings.”
Supporters point to lost tax revenue
Nebraska voters legalized casino gambling at the state’s racetracks in 2020. The online measures would have allowed each racino to offer two online platforms, or skins, for a total of 12 statewide.
The state taxes gross gaming revenue at 20%, with 70% of the resulting tax revenue directed to property tax relief, and the measures would have applied that same structure to online wagering.
WarHorse, which opened the state’s first racino in Lincoln in 2022 and operates another facility in Omaha, was among the operators that missed out on the opportunity.
“I’m disappointed for the state of Nebraska,” Lynne McNally, director of government relations for WarHorse Casino, told Nebraska Public Media on Tuesday night. “Online betting is happening right now, all over the state. Nebraska is just losing out on tax revenue… that’s a real loss for the state of Nebraska.”
“It really is regrettable that we are not able to regulate and tax this activity because it should be subject to tax. There needs to be reasonable regulations on these activities, addressing problem gambling. Without these measures, that’s not going to happen. It’s gonna continue to be the Wild West out there,” she added.
Meanwhile, several prediction markets continue to offer sports event contracts in Nebraska under federal oversight from the Commodity Futures Trading Commission.
Outspent opposition carries the vote
Save Nebraska Sports, the main group opposing the measures, won despite spending far less than the sportsbooks. State Treasurer Joey Spellerberg, a backer of the Save Nebraska Sports, called the fight a “David and Goliath” matchup and said the group was outspent 20 to 1, the Nebraska Examiner reported.
The campaign also spilled into a legislative race. On Oct. 27, Tax Relief Nebraska gave a $750,000 contribution to Tim Anderson, a Republican running in Legislative District 38, which paid for ads under Anderson’s name supporting online wagering. Spellerberg, State Auditor Mike Foley and U.S. Sen. Pete Ricketts withdrew their endorsements of Anderson over the connection.
Anderson said he supports property tax relief, but Ricketts disputed how much online betting would deliver.
“What you’re being sold with this online sports gambling bill… It’s not really real,” Ricketts told NTV. “It amounts to about a dollar a month if you own a $250,000 home, and Nebraskans would have to lose $800 million in gambling losses to pay for that. So what we’re trying to do is get the message out that we’ve got a united front, and get the word out about these ballot initiatives.”
The opposition also leaned on some of the state’s most recognizable sports figures. Former Huskers football coach Tom Osborne led a letter from 45 current and former Huskers student athletes and coaches opposing the measures, warning of game manipulation, relentless gambling ads and harassment of athletes over losing bets.
That message carried across most of the state. Support for the measures was largely limited to the Omaha area, where Douglas and Sarpy counties each backed Initiative 441 52% to 48%. Lancaster County, home to Lincoln, voted against it 58% to 42%, while opposition ran even stronger in central Nebraska, with Buffalo County voting 64% against and Hall County 60% against.
